What is the discounted payback period for branka

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Reference no: EM132653341

Branka is considering two projects both of which have an initial cost of $20,000 and total cash inflows of $25,000. The cash inflows of project A are $3,000, $5,000, $8,000, and $9,000 over the next four years, respectively. The cash inflows for project B are $9,000, $8,000, $5,000, and $3,000 over the next four years, respectively. Branka requires a 10 percent rate of return and has a required discounted payback period of 3 years.

Problem a. What is the Discounted Payback period for her?

Problem b. Would Branka accept the project?

Reference no: EM132653341

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